23 U.S. Code § 120 - Federal share payable

(1) In general.— Except as otherwise provided in this chapter, the Federal share payable on account of any project on the Interstate System (including a project to add high occupancy vehicle lanes and a project to add auxiliary lanes but excluding a project to add any other lanes) shall be 90 percent of the total cost thereof, plus a percentage of the remaining 10 percent of such cost in any State containing unappropriated and unreserved public lands and nontaxable Indian lands, individual and tribal, exceeding 5 percent of the total area of all lands therein, equal to the percentage that the area of such lands in such State is of its total area; except that such Federal share payable on any project in any State shall not exceed 95 percent of the total cost of such project.

(2) State-determined lower federal share.— In the case of any project subject to paragraph (1), a State may determine a lower Federal share than the Federal share determined under such paragraph.

(b) Other Projects.— Except as otherwise provided in this title, the Federal share payable on account of any project or activity carried out under this title (other than a project subject to subsection (a)) shall be—

(1)80 percent of the cost thereof, except that in the case of any State containing nontaxable Indian lands, individual and tribal, and public domain lands (both reserved and unreserved) exclusive of national forests and national parks and monuments, exceeding 5 percent of the total area of all lands therein, the Federal share, for purposes of this chapter, shall be increased by a percentage of the remaining cost equal to the percentage that the area of all such lands in such State, is of its total area; or

(2)80 percent of the cost thereof, except that in the case of any State containing nontaxable Indian lands, individual and tribal, public domain lands (both reserved and unreserved), national forests, and national parks and monuments, the Federal share, for purposes of this chapter, shall be increased by a percentage of the remaining cost equal to the percentage that the area of all such lands in such State is of its total area;

except that the Federal share payable on any project in a State shall not exceed 95 percent of the total cost of any such project. In any case where a State elects to have the Federal share provided in paragraph (2) of this subsection, the State must enter into an agreement with the Secretary covering a period of not less than 1 year, requiring such State to use solely for purposes eligible for assistance under this title (other than paying its share of projects approved under this title) during the period covered by such agreement the difference between the State’s share as provided in paragraph (2) and what its share would be if it elected to pay the share provided in paragraph (1) for all projects subject to such agreement. In the case of any project subject to this subsection, a State may determine a lower Federal share than the Federal share determined under the preceding sentences of this subsection.

(c) Increased Federal Share.—

(1) Certain safety projects.— The Federal share payable on account of any project for traffic control signalization, maintaining minimum levels of retroreflectivity of highway signs or pavement markings, traffic circles (also known as “roundabouts”), safety rest areas, pavement marking, shoulder and centerline rumble strips and stripes, commuter carpooling and vanpooling, rail-highway crossing closure, or installation of traffic signs, traffic lights, guardrails, impact attenuators, concrete barrier endtreatments, breakaway utility poles, or priority control systems for emergency vehicles or transit vehicles at signalized intersections may amount to 100 percent of the cost of construction of such projects; except that not more than 10 percent of all sums apportioned for all the Federal-aid programs for any fiscal year in accordance with section
104 of this title shall be used under this subsection. In this subsection, the term “safety rest area” means an area where motor vehicle operators can park their vehicles and rest, where food, fuel, and lodging services are not available, and that is located on a segment of highway with respect to which the Secretary determines there is a shortage of public and private areas at which motor vehicle operators can park their vehicles and rest.

(2) CMAQ projects.— The Federal share payable on account of a project or program carried out under section
149 with funds obligated in fiscal year 2008 or 2009, or both, shall be not less than 80 percent and, at the discretion of the State, may be up to 100 percent of the cost thereof.

(3) Innovative project delivery.—

(A) In general.— Except as provided in subparagraph (C), the Federal share payable on account of a project, program, or activity carried out with funds apportioned under paragraph (1), (2), or (5) of section
104(b) may, at the discretion of the State, be up to 100 percent for any such project, program, or activity that the Secretary determines—

(i)contains innovative project delivery methods that improve work zone safety for motorists or workers and the quality of the facility;

(ii)contains innovative technologies, manufacturing processes, financing, or contracting methods that improve the quality of, extend the service life of, or decrease the long-term costs of maintaining highways and bridges;

(iii)accelerates project delivery while complying with other applicable Federal laws (including regulations) and not causing any significant adverse environmental impact; or

(iv)reduces congestion related to highway construction.

(B) Examples.— Projects, programs, and activities described in subparagraph (A) may include the use of—

(i)prefabricated bridge elements and systems and other technologies to reduce bridge construction time;

(ii)innovative construction equipment, materials, or techniques, including the use of in-place recycling technology and digital 3-dimensional modeling technologies;

(iii)innovative contracting methods, including the design-build and the construction manager-general contractor contracting methods;

(iv)intelligent compaction equipment; or

(v)contractual provisions that offer a contractor an incentive payment for early completion of the project, program, or activity, subject to the condition that the incentives are accounted for in the financial plan of the project, when applicable.

(C) Limitations.—

(i) In general.— In each fiscal year, a State may use the authority under subparagraph (A) for up to 10 percent of the combined apportionments of the State under paragraphs (1), (2), and (5) of section
104(b).

(ii) Federal share increase.— The Federal share payable on account of a project, program, or activity described in subparagraph (A) may be increased by up to 5 percent of the total project cost.

(d)The Secretary may rely on a statement from the Secretary of the Interior as to the area of the lands referred to in subsections (a) and (b) of this section. The Secretary of the Interior is authorized and directed to provide such statement annually.

(e) Emergency Relief.— The Federal share payable for any repair or reconstruction provided for by funds made available under section
125 for any project on a Federal-aid highway, including the Interstate System, shall not exceed the Federal share payable on a project on the system as provided in subsections (a) and (b), except that—

(1)the Federal share payable for eligible emergency repairs to minimize damage, protect facilities, or restore essential traffic accomplished within 180 days after the actual occurrence of the natural disaster or catastrophic failure may amount to 100 percent of the cost of the repairs;

(2)the Federal share payable for any repair or reconstruction of Federal land transportation facilities, Federal land access transportation facilities, and tribal transportation facilities may amount to 100 percent of the cost of the repair or reconstruction;

(3)the Secretary shall extend the time period in paragraph (1) taking into consideration any delay in the ability of the State to access damaged facilities to evaluate damage and the cost of repair; and

(4)the Federal share payable for eligible permanent repairs to restore damaged facilities to predisaster condition may amount to 90 percent of the cost of the repairs if the eligible expenses incurred by the State due to natural disasters or catastrophic failures in a Federal fiscal year exceeds the annual apportionment of the State under section
104 for the fiscal year in which the disasters or failures occurred.

(f)The Secretary is authorized to cooperate with the State transportation departments and with the Department of the Interior in the construction of Federal-aid highways within Indian reservations and national parks and monuments under the jurisdiction of the Department of the Interior and to pay the amount assumed therefor from the funds apportioned in accordance with section
104 of this title to the State wherein the reservations and national parks and monuments are located.

(g)Notwithstanding any other provision of this section or of this title, the Federal share payable on account of any project under this title in the Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands shall be 100 per centum of the total cost of the project.

(h) Increased Non-Federal Share.— Notwithstanding any other provision of this title and subject to such criteria as the Secretary may establish, a State may contribute an amount in excess of the non-Federal share of a project under this title so as to decrease the Federal share payable on such project.

(i) Credit for Non-Federal Share.—

(1) Eligibility.—

(A) In general.— A State may use as a credit toward the non-Federal share requirement for any funds made available to carry out this title (other than the emergency relief program authorized by section
125) or chapter
53 of title
49 toll revenues that are generated and used by public, quasi-public, and private agencies to build, improve, or maintain highways, bridges, or tunnels that serve the public purpose of interstate commerce.

(B) Special rule for use of federal funds.— If the public, quasi-public, or private agency has built, improved, or maintained the facility using Federal funds, the credit under this paragraph shall be reduced by a percentage equal to the percentage of the total cost of building, improving, or maintaining the facility that was derived from Federal funds.

(C) Federal funds defined.— In this paragraph, the term “Federal funds” does not include loans of Federal funds or other financial assistance that must be repaid to the Government.

(2) Maintenance of effort.—

(A) In general.— The credit for any non-Federal share provided under this subsection shall not reduce nor replace State funds required to match Federal funds for any program under this title.

(B) Condition on receipt of credit.— To receive a credit under paragraph (1) for a fiscal year, a State shall enter into such agreement as the Secretary may require to ensure that the State will maintain its non-Federal transportation capital expenditures in such fiscal year at or above the average level of such expenditures for the preceding 3 fiscal years; except that if, for any 1 of the preceding 3 fiscal years, the non-Federal transportation capital expenditures of the State were at a level that was greater than 130 percent of the average level of such expenditures for the other 2 of the preceding 3 fiscal years, the agreement shall ensure that the State will maintain its non-Federal transportation capital expenditures in the fiscal year of the credit at or above the average level of such expenditures for the other 2 fiscal years.

(C) Transportation capital expenditures defined.— In subparagraph (B), the term “non-Federal transportation capital expenditures” includes any payments made by the State for issuance of transportation-related bonds.

(3) Treatment.—

(A) Limitation on liability.— Use of a credit for a non-Federal share under this subsection that is received from a public, quasi-public, or private agency—

(i)shall not expose the agency to additional liability, additional regulation, or additional administrative oversight; and

(ii)shall not subject the agency to any additional Federal design standards or laws (including regulations) as a result of providing the non-Federal share other than those to which the agency is already subject.

(B) Chartered multistate agencies.— When a credit that is received from a chartered multistate agency is applied to a non-Federal share under this subsection, such credit shall be applied equally to all charter States.

(j) Use of Federal Agency Funds.— Notwithstanding any other provision of law, any Federal funds other than those made available under this title and title 49 may be used to pay the non-Federal share of the cost of any transportation project that is within, adjacent to, or provides access to Federal land, the Federal share of which is funded under this title or chapter
53 of title
49.

(k) Use of Federal Land and Tribal Transportation Funds.— Notwithstanding any other provision of law, the funds authorized to be appropriated to carry out the tribal transportation program under section
202 and the Federal lands transportation program under section
203 may be used to pay the non-Federal share of the cost of any project that is funded under this title or chapter
53 of title
49 and that provides access to or within Federal or tribal land.

Subsec. (e). Pub. L. 112–141, § 1508(2), added subsec. (e) and struck out former subsec. (e). Prior to amendment, text read as follows: “The Federal share payable on account of any repair or reconstruction provided for by funds made available under section
125 of this title on account of any project on a Federal-aid highway, including the Interstate System, shall not exceed the Federal share payable on a project on such highway as provided in subsections (a) and (b) of this section; except that (1) the Federal share payable for eligible emergency repairs to minimize damage, protect facilities, or restore essential traffic accomplished within 180 days after the actual occurrence of the natural disaster or catastrophic failure may amount to 100 percent of the costs thereof; and (2) the Federal share payable on account of any repair or reconstruction of forest highways, forest development roads and trails, park roads and trails, parkways, public lands highways, public lands development roads and trails, and Indian reservation roads may amount to 100 percent of the cost thereof. The total cost of a project may not exceed the cost of repair or reconstruction of a comparable facility. As used in this section with respect to bridges and in section
144 of this title, ‘a comparable facility’ shall mean a facility which meets the current geometric and construction standards required for the types and volume of traffic which such facility will carry over its design life.”

Subsecs. (g), (h). Pub. L. 112–141, § 1508(3), redesignatedsubsecs. (h) and (i) as (g) and (h), respectively, and struck out former subsec. (g). Prior to amendment, text of subsec. (g) read as follows: “At the request of any State, the Secretary may from time to time enter into agreements with such State to reimburse the State for the Federal share of the costs of preliminary and construction engineering at an agreed percentage of actual construction costs for each project, in lieu of the actual engineering costs for such project. The Secretary shall annually review each such agreement to insure that such percentage reasonably represents the engineering costs actually incurred by such State.”

Subsec. (i). Pub. L. 112–141, § 1508(3), (4), redesignatedsubsec. (j) as (i) and struck out “and the Appalachian development highway system program under section
14501 of title
40” after “authorized by section
125” in par. (1)(A).

“(j) Use of Federal Land Management Agency Funds.—Notwithstanding any other provision of law, the funds appropriated to any Federal land management agency may be used to pay the non-Federal share of the cost of any project the Federal share of which is funded under this title or chapter
53 of title
49.

“(k) Use of Federal Lands Highways Program Funds.—Notwithstanding any other provision of law, the funds authorized to be appropriated to carry out the Federal lands highways program under section
204 may be used to pay the non-Federal share of the cost of any project that is funded under this title or chapter
53 of title
49 and that provides access to or within Federal or Indian lands.”

Subsec. (b). Pub. L. 105–178, § 1111(a)(2), inserted at end of concluding provisions “In the case of any project subject to this subsection, a State may determine a lower Federal share than the Federal share determined under the preceding sentences of this subsection.”

1991—Subsecs. (a) to (c). Pub. L. 102–240, § 1021(a), added subsecs. (a) to (c) and struck out former subsec. (a) which contained provisions relating to Federal share of Federal-aid primary, secondary and urban system projects, former subsec. (b) which contained provisions relating to Federal share of Interstate System projects financed with funds authorized to be appropriated prior to June 29, 1956, and former subsec. (c) which contained provisions relating to Federal share of Interstate System projects financed with funds made available under section 108(b) of the Federal-Aid Highway Act of 1956.

Subsec. (d). Pub. L. 102–240, § 1022(a), which directed the substitution of “180 days” for “90 days” in subsec. (d) as redesignated, could not be executed because the phrase “90 days” does not appear in subsec. (d) as redesignated.

Pub. L. 102–240, § 1021(b)(3), which directed the substitution of “and (b)” for “and (c)” in subsec. (d) as redesignated, could not be executed because the phrase “and (c)” does not appear in subsec. (d) as redesignated.

Subsecs. (j) to (m). Pub. L. 102–240, § 1021(b)(1), struck out subsec. (j) which related to Federal share of project financed under section
307(c) of this title, subsec. (k) which related to Federal share of projects under sections
143 and
155 of this title and projects for priority primary routes under section
147 of this title, subsec. (l) which related to Federal share of projects to reconstruct, resurface, restore and rehabilitate highways which incurred substantial use as result of transportation activities to meet national energy requirements, and subsec. (m) which related to Federal share of Great River Road projects under section
148 of this title.

Subsec. (f). Pub. L. 100–17, § 117(c)(1), inserted heading and amended first sentence generally. Prior to amendment, first sentence read as follows: “The Federal share payable on account of any repair or reconstruction provided for by funds made available under section
125 of this title shall not exceed 100 per centum of the cost thereof: Provided, That the Federal share payable on account of any repair or reconstruction of forest highways, forest development roads and trails, park roads and trails, parkways, public lands highways, public lands development roads and trails, and Indian reservation roads may amount to 100 per centum of the cost thereof.”

1983—Subsec. (j). Pub. L. 98–78inserted “, and for funds allocated under the provisions of section
155 of this title and obligated subsequent to January 6, 1983,” after “Representatives”.

1983—Subsec. (c). Pub. L. 97–424, § 117(a), inserted provision at end that, notwithstanding subsection (a) of this section, the Federal share payable on account of any project financed with primary funds on the Interstate System for resurfacing, restoring, rehabilitating, and reconstructing shall be the percentage provided in this subsection.

Subsec. (d). Pub. L. 97–424, § 117(b), inserted “or for pavement marking” after “signalization”, and provision that the Federal share payable on account of any project for traffic control signalization under section
103(e)(4) of this title may amount to 100 per centum of the cost of construction of such project.

Pub. L. 97–424, § 123(a), inserted “or for commuter carpooling and vanpooling” before “, may amount to 100 per centum”.

Subsec. (f). Pub. L. 97–424, § 153(f), substituted “100 per centum” for “75 per centum” after “shall not exceed”, struck out provision that in the case of any State containing nontaxable Indian lands, individual and tribal, and public domain lands (both reserved and unreserved) exclusive of national forests and national parks and monuments exceeding 5 per centum of the total area of all lands therein, the Federal share would be increased by a percentage of the remaining cost equal to the percentage that the area of all such lands in such State is of its total area, struck out “, whether or not such highways, roads, or trails are on any Federal-aid highway system” after “may amount to 100 per centum of the cost thereof”, substituted provision that the total cost of a project may not exceed the cost of repair or reconstruction of a comparable facility for provision that the Secretary might increase the Federal share payable on account of any repair or reconstruction under this section up to 100 per centum of the replacement cost of a comparable facility if he determined it to be in the public interest, and struck out provision that any project agreement for which the final voucher had not been approved by the Secretary on or before the date of this Act might be modified to provide for the Federal share authorized herein.

1968—Subsec. (a). Pub. L. 90–495, § 34, made provision for an election by the States as to the formula it desired to have its Federal share computed under by adding an optional formula permitting an increase in the Federal share by a percentage of the remaining cost equal to the percentage that the area of specified lands is of the State’s total, but not so as to increase the share beyond 95 percent of the total cost of the project, with States exercising the option required to enter into an agreement to use the difference solely for highway construction purposes.

Subsec. (f). Pub. L. 90–495, § 27(b), authorized the Secretary to increase the Federal share payable on account of any repair or reconstruction under this section up to 100 per centum of the replacement cost of a comparable facility if he determines that it is in the public interest.

1966—Subsec. (f). Pub. L. 89–574added parkways, public land highways, public lands development roads, and trails to the list of road projects on the repair or reconstruction of which the Federal share payable may amount to 100 per centum of the cost.

1964—Subsec. (f). Pub. L. 88–658provided that in case of any State containing nontaxable Indian lands, and public domain lands exclusive of national forests and national parks and monuments exceeding 5 per centum of the total area of all lands therein, the Federal share shall be increased by a percentage of the remaining cost equal to the percentage that the area of all such lands in such State, is of its total area.

1960—Subsec. (a). Pub. L. 86–657substituted “nontaxable Indian lands, individual and tribal, and public domain lands (both reserved and unreserved) exclusive of national forests and national parks and monuments” for “unappropriated and unreserved public lands and nontaxable Indian lands, individual and tribal”.

Subsec. (f). Pub. L. 86–342provided that the Federal share payable on account of any repair or reconstruction of forest highways, forest development roads and trails, park roads and trails, and Indian reservation roads may amount to 100 per centum of the cost thereof, whether or not such highways, roads or trails are on any Federal-aid highway system.

Subsec. (h). Pub. L. 86–70, § 21(d)(4), repealed subsec. (h) which related to contributions by the Territory of Alaska and to the expenditure of Federal funds apportioned to the Territory of Alaska and funds contributed by the Territory.

Effective Date of 2012 Amendment

Amendment by Pub. L. 112–141effective Oct. 1, 2012, see section 3(a) ofPub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section
101 of this title.

Effective Date of 2007 Amendment

Amendment by Pub. L. 110–140effective on the date that is 1 day after Dec. 19, 2007, see section 1601 ofPub. L. 110–140, set out as an Effective Date note under section
1824 of Title
2, The Congress.

Amendment by section 1021 ofPub. L. 102–240effective Dec. 18, 1991, and applicable to funds authorized to be appropriated or made available after Sept. 30, 1991, and, with certain exceptions, not applicable to funds appropriated or made available on or before Sept. 30, 1991, see section 1100 ofPub. L. 102–240, set out as a note under section
104 of this title.

Pub. L. 102–240, title I, § 1022(c),Dec. 18, 1991, 105 Stat. 1951, provided that: “The amendments made by subsections (a) and (b) [amending this section and section
125 of this title] shall only apply to natural disasters and catastrophic failures occurring after the date of the enactment of this Act [Dec. 18, 1991].”

Effective Date of 1987 Amendment

Pub. L. 100–17, title I, § 117(c)(2),Apr. 2, 1987, 101 Stat. 155, provided that: “The amendment made by paragraph (1) [amending this section] shall apply to all natural disasters and catastrophic failures which occur after the date of the enactment of this Act [Apr. 2, 1987].”

Effective Date of 1978 Amendment

Pub. L. 95–599, title I, § 129(h),Nov. 6, 1978, 92 Stat. 2708, provided that: “The amendments made by subsections (a) through (g) of this section [amending this section and sections
148,
155,
215, and
406 of this title] shall take effect with respect to obligations incurred after the date of enactment of this section [Nov. 6, 1978].”

Amendment by section 27(b) ofPub. L. 90–495applicable to repair or construction with respect to which project agreements have been entered into on or before Jan. 1, 1968, see section 27(c) ofPub. L. 90–495, set out as a note under section
125 of this title.

“(a) Eligibility.—A State may use as a credit toward the non-Federal matching share requirement for all programs under this Act [see Short Title of 1991 Amendment note set out under section
101 of Title
49, Transportation] and title 23, United States Code, toll revenues that are generated and used by public, quasi-public and private agencies to build, improve, or maintain highways, bridges, or tunnels that serve the public purpose of interstate commerce. Such public, quasi-public or private agencies shall have built, improved, or maintained such facilities without Federal funds.

“(b) Maintenance of Effort.—The credit for any non-Federal share shall not reduce nor replace State monies required to match Federal funds for any program pursuant to this Act or title 23, United States Code. In receiving a credit for non-Federal capital expenditures under this section, a State shall enter into such agreements as the Secretary may require to ensure that such State will maintain its non-Federal transportation capital expenditures at or above the average level of such expenditures for the preceding three fiscal years.

“(c) Treatment.—Use of such credit for a non-Federal share shall not expose such agencies from which the credit is received to additional liability, additional regulation or additional administrative oversight. When credit is applied from chartered multi-State agencies, such credit shall be applied equally to all charter States. The public, quasi-public, and private agencies from which the credit for which the non-Federal share is calculated shall not be subject to any additional Federal design standards, laws or regulations as a result of providing non-Federal match other than those to which such agency is already subject.”

“(a) Waiver of Matching Share.—Notwithstanding any other provision of law, the Federal share of any qualifying project approved by the Secretary under title 23, United States Code, and of any qualifying project for which the United States becomes obligated to pay under title 23, United States Code, during the period beginning on October 1, 1991, and ending September 30, 1993, shall be the percentage of the construction cost as the State requests, up to and including 100 percent.

“(b) Repayment.—The total amount of increases in the Federal share made pursuant to subsection (a) for any State shall be repaid to the United States by the State on or before March 30, 1994. Payments shall be deposited in the Highway Trust Fund and repaid amounts shall be credited to the appropriate apportionment accounts of the State.

“(c) Deduction From Apportionments.—If a State has not made the repayment as required by subsection (b), the Secretary shall deduct from funds apportioned to the State under title 23, United States Code, in each of the fiscal years 1995 and 1996, a pro rata share of each category of apportioned funds. The amount which shall be deducted in each fiscal year shall be equal to 50 percent of the amount needed for repayment. Any amount deducted under this subsection shall be reapportioned for fiscal years 1995 and 1996 in accordance with title 23, United States Code, to those States which have not received a higher Federal share under this section and to those States which have made the repayment required by subsection (b).

“(d) Qualifying Project Defined.—For purposes of this section, the term ‘qualifying project’ means a project approved by the Secretary after the effective date of this title [Dec. 18, 1991], or a project for which the United States becomes obligated to pay after such effective date, and for which the Governor of the State submitting the project has certified, in accordance with regulations established by the Secretary, that sufficient funds are not available to pay the cost of the non-Federal share of the project.”

Incentive Program for Use of Coal Ash

Pub. L. 100–17, title I, § 117(f),Apr. 2, 1987, 101 Stat. 156, provided that in fiscal years 1987 to 1991, the Federal share of the cost of highway or bridge construction projects using significant amounts of coal ash would be increased by 5 percent, but not to exceed 95 percent of the cost.

Pub. L. 97–424, title I, § 153(g),Jan. 6, 1983, 96 Stat. 2133, provided that: “All obligations for projects resulting from a natural disaster or catastrophic failure which the Secretary finds to be eligible for emergency relief subsequent to the date of enactment of this subsection [Jan. 6, 1983] shall provide for the Federal share required by subsection (f) ofsection
120 of title 23, United States Code, as amended by this section.”

Federal Share of Projects Approved During Period Beginning February 12, 1975, and Ending September 30, 1975

Pub. L. 94–30, §§ 1,
2,June 4, 1975, 89 Stat. 171, as amended by Pub. L. 94–280, title I, § 145,May 5, 1976, 90 Stat. 446, provided for Federal share of projects approved under section
106(a) of this title, and projects for which United States becomes obligated under former section
117 of this title during the period beginning Feb. 12, 1975, and ending Sept. 30, 1975, and repayment schedule for States from Jan. 1, 1977, through Jan. 1, 1979.

“(a) In General.—The Secretary of the Treasury, in consultation with the Secretary of Transportation and the staff of the Joint Committee on Taxation, shall—

“(1) review and analyze each excise tax now dedicated to the Highway Trust Fund with respect to such factors as ease or difficulty of administration of such tax and the compliance burdens imposed on taxpayers by such tax, and

“(2) on or before April 15, 1982, report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate as to the matters set forth in paragraph (1) and other findings, as well as recommendations on—

“(A) improvements in excise taxation which would enhance tax administration, equity, and compliance, or

“(B) a new system of raising revenues to fund the Highway Trust Fund which would meet the objectives set forth in subparagraph (A).

The recommendations described in paragraph (2) shall be formulated in conjunction with the recommendations of the cost allocation study under section
506 set out as note under section
307 of this title of the equitable distribution of the highway excise taxes.

“(b) Interim Reports.—The Secretary of the Treasury, in consultation with the Secretary of Transportation and the staff of the Joint Committee on Taxation, shall file an interim report with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on or before April 15, 1980, and a second interim report on or before April 15, 1981.”

“(b) Declaration of Policy.—It is hereby declared to be the policy of the Congress that if it hereafter appears—

“(1) that the total receipts of the Trust Fund (exclusive of advances under subsection (d) will be less than the total expenditures from such Fund (exclusive of repayments of such advances); or

“(2) that the distribution of the tax burden among the various classes of persons using the Federal-aid highways, or otherwise deriving benefits from such highways, is not equitable, the Congress shall enact legislation in order to bring about a balance of total receipts and total expenditures, or such equitable distribution, as the case may be.

“(c) to (g) [Repealed. Pub. L. 97–424, title V, § 531(b),Jan. 6, 1983, 96 Stat. 2191. Subsecs. (c) to (g) provided generally for the transfer of the equivalent of the receipts of certain taxes to the Fund, for additional appropriations to the Fund, for its management, methods and purposes of expenditures, and for adjustment of apportionments regarding the Fund.]”

Pub. L. 86–70, § 21(d)(4),June 25, 1959, 73 Stat. 145, which repealed subsec. (h) of this section, provided in part that the provisions of subsec. (h) relating to the percentage of funds to be contributed by Alaska shall continue to apply to funds apportioned to Alaska for fiscal year 1960 and prior fiscal years.